On March 15, 2018, Bank of America issued 94,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series FF for $2.35 billion. Dividends are payable semiannually on or about March 15 and September 15. a. Assume the stock was issued at face value. What is the face value of each Series FF share? b. What will be the total dividend for the year ended December 31, 2018, assuming that the number of shares remains unchanged?
Q: Pearl Company had the following stockholders' equity as of January 1, 2020. Common stock, $ 5 par…
A: Treasury stock is a method used by the organization to repurchase the issued stock. It is also known…
Q: On January 1, 2020, Windsor Company issued 10-year, $ 2,010,000 face value, 6% bonds, at par. Each…
A: No. of potential shares = (Total face value of bonds / $1000) x 15 = (2010000/1000)*15 = 30150…
Q: 100,000 Common stock, $10 par 500,000 Additional paid-in capital on preferred stock 20,000…
A: feb 2 dividend payable : preferred 4,000 dividend payable : common 40,000 to cash…
Q: The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the…
A: 1. Particulars Amount Opening Balance of Treasury Shares 145,200 Fresh Issue of…
Q: During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire…
A: Basic Earnings Per share = Earnings Available for Ordinary Share holders/Number of Ordinary Shares…
Q: During 2018, Longhorn Corp. had net income of $300,000 and paid dividends to its preferred…
A: The question is based on the concept of Shares and debentures.
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: The treasury share are the shares that are repurchased by the company fron its own issued shares.
Q: The net income of Monarch Skate Inc. amounted to $3,750,000 for the year ended December 31, 2020.…
A: Earning per share = Net income/ Weighted avearge no of outstanding share
Q: On December 18, 2020, UNO Corporation issued 5,250 ordinary shares, par P30 for P58 per share. At…
A: Paid in capital in excess of par = Issue price per share - Par value per share = P58 per share - P30…
Q: Metlock Corporation issued 108,000 shares of $18 par value, cumulative, 9% preferred stock on…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: ardent co has 5,000,000 ordinary shares of 25 cents each in issue,and also had an issue in 2019;…
A: Ordinary shares= $5,000,000 of 25 cents 14% convertible loan stock= $1,000,000 convertible in three…
Q: On January 1, 2018, Manama Company has 8% 80,000 shares of $10 par value, Cumulative preferred stock…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Carlyon Company listed the following items in its December 31, 2018, financial statements:…
A: Introduction: Journal entry is an accounting entry to record every transaction takes place in an…
Q: Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued…
A: No of shares issued = 60,000 shares Par value of shares issued = $2 Net Income = $250,000 Dividend =…
Q: On March 15, American Eagle declares a quarterly cash dividend of $0.125 per share payable on April…
A:
Q: dentifying and Analyzing Financial Statement Effects of Cash Dividends On March 15, 2018, Bank of…
A: The following calculations are done to analyze the effects of cash dividends paid in 2018 on the…
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: Shares are used to divide the capital of the company into small parts, so that it is will be…
Q: oOn January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…
A: A log book is used to record a business transaction in an organization's accounting records. A…
Q: The Shareholders' Equity of Jackie Company as of December 31, 2021 is as follows: [Refer to the…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 77,000 shares authorized and issued* 1,232,000
A: A Dividend is a payment given to stakeholders by a corporation. When a firm makes a profit or has a…
Q: The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:…
A: Income before interest and taxes = Income before tax + Interest expense = $1,500,000 + ($5,000,000 x…
Q: On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par common stock issued and…
A: As on 31.12.2021 Common Stock 1290000 share of $6 per Share $ 77,40,000 1290000…
Q: age selling price of the stock that had been issued as of december 31, 2021? b. The par value of…
A: Since as there are multiple sub parts are given, so as per answering guidelines we do only first…
Q: On January 1, 2022, Splish Brothers Inc. had $1,320,000 of common stock outstanding that was issued…
A: Definition: Dividends: Dividends are the rewards to the stockholders for investing their money in…
Q: On the first day of 2021, Paccar had 100,000 shares of common stock outstanding. The following…
A: Earnings per share are the amount of earnings of the entity during the current period that is…
Q: . During 2021, CAPTAIN AMERICA Company had two classes of shares issued ind outstanding for the…
A: Calculation of Basic Earnings per share Basic Earnings per share = Earnings available for Common…
Q: On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Carlyon Company listed the following items in its December 31, 2018, financial statements:…
A: Prepare journal entries to record the preceding transactions:
Q: Blossom Corporation issued 110,000 shares of $20 par value, cumulative, 8% preferred stock on…
A: Definition: Preferred stock: Preferred stock is the cash raised by the company by issuing preferred…
Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: January 15 - It issued 1,300 treasury shares for P40 each. February 1 - Sold 180, P1,000, 9% bonds…
A: Computation of ending balance of the Ordinary Share Capital account: Opening Balance as of 1st…
Q: Kingbird Corporation had 270,000 shares of common stock outstanding on January 1, 2017. On May 1,…
A:
Q: On January 1, 2018, Tonge Industries had outstanding 440,000 common shares ($l par) that originally…
A: Formulas: ---------------------------------
Q: On January 1, 2020, Volume Company had the following account balance carried over from the previous…
A: Treasury Stock The purpose of issue of treasury stock which describes as the repurchase of own stock…
Q: On January 1, 2020, the stockholders’ equity section of Skysong, Inc. shows common stock ($6 par…
A: We know that treasury stock is the stock which is purchase by the company from open market, it also…
Q: At December 31, 2021, MedX Corporation had outstanding 200,000 shares of common stock. Also…
A: Basic earnings per share = (Net income - preferred dividend)/Weighted average outstanding common…
Q: On January 1, 2020, a company issued 10-year, $330,000 face value, 7% bonds, at par. Each $1,000…
A: Potential common stock = (Face value of bonds / par value per bond) x convertible ratio = ($330,000…
Q: On January 1, 2019, Concord Corporation had $1,470,000 of common stock outstanding that was issued…
A: Dividend means an amount paid by a corporation/company to its stockholders, out of profit. Dividend…
Q: The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:…
A: Price earning ratio helps investors to determine the actual fair or right value of a stock for…
Q: At December 31, 2021, Hancock Company had 500,000 shares of common stock issued and outstanding,…
A: Earnings per share = Net IncomeWeighted Average number of shares
Q: Belton, Inc. had the following transactions in 2018, its first year of operations: Issued 37,000…
A: The total paid-in capital will be calculated by multiplying the shares issued by the company by the…
Q: Shamrock Corporation has 9,400 shares of $100 par value, 8%, preferred stock and 48,400 shares of…
A: For cumulative preferred stocks, the preferred dividend keeps on cumulating for all the periods for…
Q: Julien Company had $800,000 net income in 2021. On 1 January 2021, there were 400,000 ordinary…
A: Earnings per share is acknowledged as the profit which can be earned by the common stockholders of a…
Q: During all of 2018 Dawson Manufacturing Company had 950,000 shares of common stock outstanding. On…
A: Diluted Earning per share (DEPS) means computation of the company's earning per share in a situation…
Q: During the first year of operation, a company issued 60,000 shares of $2 par value common stock at a…
A: Paid in Capital Common Stock will consist of preferred and common stock in total. It is also called…
Q: Story Corporation had net income of $300,000 in 2018. The weighted average number of shares…
A: The answer is as fallows
Q: Whispering Corporation has 8,700 shares of $100 par value, 9%, preferred stock and 48,300 shares of…
A: Formula: Preferred dividend = Preferred shares x PAR value x Preferred rate
Q: During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire…
A: The basic earnings per share is calculated as net income available to common shareholders divided by…
Q: The Fontenelle Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,…
A: working note: income available to common share after conversion = (net income - preferred dividend…
On March 15, 2018, Bank of America issued 94,000 shares of 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series FF for $2.35 billion. Dividends are payable semiannually on or about March 15 and September 15.
a. Assume the stock was issued at face value. What is the face value of each Series FF share?
b. What will be the total dividend for the year ended December 31, 2018, assuming that the number of shares remains unchanged?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.
